Briefly, in 1922 the Pension Board raised the monthly rate to $30 which depleted the pension fund.
To solve the problem, House Bill No. 497, Act 176, by Mr. S. O. Shattuck proposed an amendment to Sections 2 and 3 of Article 18 of the Louisiana Constitution of 1921 which authorized the borrowing of funds and the issuance of bonds or certificates of indebtedness with which to pay the Confederate pensions.
The Board of Liquidation was authorized and empowered to anticipate and borrow annually five hundred thousand dollars, and to use bonds or certificate of indebtedness secured by a tax of three-fourths of a mill levied upon all taxable property prior to December 31, 1933.
This amendment to the constitution came before the voters of Louisiana on election day 4 Nov 1924, the same day Calvin Coolidge was elected president, and the amendment was accepted.
The state treasurer issued the bonds every year to the highest bidder.
The first bonds were sold in December 1925 to City Trust and Savings Bank of Shreveport.
In 1926 they were sold to the William R. Compton Company of St. Louis.
In 1927 they were sold to the Hibernia Securities Company of New Orleans.
The above information came from the Alexandria Daily Town Talk newspaper. You can find much more detailed information about this topic by searching this newspaper, which I certainly suggest you do. I found numerous articles.
To search this newspaper go to the following link:
I search this newspaper often for it is a treasure trove of information.